FHFA Reports Higher Delinquencies And Home Prices

ency loans 60+ days delinquent increased 47% from the end of last November to the end of January, according to a report from the Federal Housing Finance Agency (FHFA). Prime loans 60+ days delinquent grew by 69.6%, while nonprime loans increased by 23%. The government-sponsored enterprises' (GSEs) conservator also notes that U.S. home prices rose 0.7% on a seasonally adjusted basis from January to February. January's previously reported 1.7% increase was revised to a 1% increase. The U.S. index is 9.5% below its April 2007 peak. The FHFA monthly index is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. Loans 90+ days delinquent (including those in bankruptcy and foreclosure) as a percent of all loans, increased from 1.67% as of Oct. 31, 2008, to 2.14% as of Dec. 31, 2008, and 2.45% as of Jan. 31. GSE-imposed suspensions, which ended March 31, caused completed foreclosure sales and third-party sales to decline 77% from the prior three-month average of 16,342 to 3,711 in December, and 79% to 3,391 in January, the FHFA adds. The agency's report also includes metrics not previously reported, such as reasons for default, loans in bankruptcy and types of modifications. The top five identified reasons for default were curtailment of income (34.1%), excessive obligations (19.8%), unemployment (8.1%), illness of the principal mortgagor or a family member (6.5%) or marital difficulties (3.5%). Loans in bankruptcy proceedings represented 0.16% of all loans serviced, according to the report. Loan modifications by Fannie Mae and Freddie Mac increased 3% from December 2008 to January, and of the modifications completed, 65.2% required an interest-rate reduction and term extension, 19.5% required a term extension only, and 5.3% required an interest-rate reduction only. SOURC

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